Title: A model for vendor managed inventory by applying the economic order quantity with fuzzy demand

Authors: Rika Ampuh Hadiguna; Harlina Suzana Jaafar; Sabariah Mohamad

Addresses: Industrial Engineering Department, Faculty of Engineering, Andalas University, Limau Manis, Padang 25163, West Sumatera, Indonesia. ' Malaysia Logistic and Supply Chain Research Center (Marcels), Malaysia Institute of Transport (MITRANS), Universiti Teknologi MARA (UiTM), Shah Alam 40450, Selangor, Malaysia. ' Malaysia Institute of Transport (MITRANS), Universiti Teknologi MARA (UiTM), Shah Alam 40450, Selangor, Malaysia

Abstract: This paper presented a decision support model for VMI system by applying the economic order quantity (EOQ) with fuzzy demand. The model of fuzzy EOQ that has been developed in this study is intended to accommodate the fuzzy demand. Result of the study shows that the optimal quantity of fuzzy EOQ is influenced by the value of ?1 and ?2. It was known that the value of order quantity (q) will be increased if the decision-makers getting more optimistic regarding the upper limit of the sales forecast implementation. The model formulation that has been introduced fuzzy number for demand to accommodate uncertainty situation.

Keywords: decision support models; vendor managed inventory; VMI; fuzzy demand; economic order quantity; EOQ; supply chain management; SCM; uncertainty.

DOI: 10.1504/IJENM.2011.043798

International Journal of Enterprise Network Management, 2011 Vol.4 No.4, pp.354 - 366

Published online: 22 Oct 2014 *

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